Wal-Mart, Target, Home Depot Report Earnings This Week

NEW YORK (TheStreet) -- A week before Thanksgiving the earnings season headliners are retailers. On Tuesday and Wednesday we get earnings from specialty retailers in sporting goods, home improvement, office supply and pets and pet supplies.

On Thursday the two major big box retailers of just about everything report their quarterly results. Also on Thursday are two discount retailers, one who features goods and products that cost a dollar, the other sells discount clothing.

Market technicals continued to deteriorate last week on the back of significant market declines on the two days following Election Day. The majority of retail-related ETFs, consumer discretionary stocks, consumer staples stocks, and retail-wholesale stocks have negative weekly chart profiles. In fact seven of the eight retail stocks I profile today have negative weekly chart profile, and the eighth is overbought.

At www.ValuEngine.com we show that 12 of 16 sectors are overvalued, led by construction overvalued by 12.0% and consumer staples overvalued by 11.4%. That stated all eight of the stocks I am profiling today have buy ratings according to ValuEngine and six are undervalued.

Reading the Table

OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last twelve months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next twelve months. Stocks with a black number in the table are projected to move higher by that percentage over the next twelve months.

Value Level: The price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC limit order to sell on strength.

Dicks Sporting Goods ( DKS) ($49.35): Reports earnings premarket Tuesday. The stock has a buy rating according to ValuEngine with an elevated price-to-earnings ratio. The stock is above its 200-day simple moving average at $48.54. The stock set a multi-year high at $54.24 on Sept. 18. The weekly chart is negative with the five-week modified moving average at $50.60 and the 200-week SMA at $32.63. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

Home Depot ( HD) ($60.96 vs. $60.86 on Oct. 17): Reports earnings premarket Tuesday. The stock has a buy rating according to ValuEngine with an elevated P/E and is above its 200-day SMA at $52.73. The stock set a multi-year high at $63.20 on Oct. 5. The weekly chart profile is overbought with the five-week MMA at $60.19 and the 200-week SMA at $35.71. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

Staples ( SPLS) ($11.15): Reports earnings premarket Wednesday. The stock has a buy rating according to ValuEngine with a favorable P/E. The stock is below its 200-day SMA at $13.47. The weekly chart profile is negative with the 200-week SMA at $18.45. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

PETsMART ( PETM) ($65.99): Reports earnings after market close Wednesday. The stock has a buy rating according to ValuEngine with an elevated P/E and is above its 200-day SMA at $63.17. The stock set a multi-year high at $72.75 on Sept. 10. The weekly chart is negative with the stock above its 200-week SMA at $39.62. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

Target ( TGT) ($62.02): Reports earnings premarket Thursday. The stock has a buy rating according to ValuEngine with a reasonable P/E and is above its 200-day SMA at $59.21. The stock set a multi-year high at $65.80 on Sept. 21. The weekly chart is negative with the 200-week SMA is at $50.97. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

Wal-Mart Stores ( WMT) ($72.31 vs. $76.91 on Oct. 17): Reports earnings premarket Thursday. The stock has a buy rating according to ValuEngine with a reasonable P/E ratio and is above its 200-day SMA at $67.34. The stock set a multi-year high at $77.60 on Oct. 16. The weekly chart is negative with the 200-week SMA at $55.81. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

Dollar Tree ( DLTR) ($37.74 vs. $40.52 on Oct. 17): Reports earnings premarket Thursday. The stock has a buy rating according to ValuEngine with a reasonable P/E and is below its 200-day SMA at $47.99. The stock set an all time high at $56.81 on June 20 and traded to a new 2012 low at $37.10 on Nov. 9. The stock has a negative weekly chart profile with the 200-week SMA is $28.71. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

In Analyzing the Retail Stock Bubble on Oct. 17, I profiled HD, WMT and DLTR. HD is about unchanged, while WMT and DLTR are lower today.

Ross Stores ( ROST) ($55.22): Reports earnings premarket Thursday. The stock has a buy rating according to ValuEngine with a reasonable P/E ratio and is below its 200-day SMA at $61.87. The stock set a multi-year high at $70.821 on Aug. 20. The stock has a negative weekly chart profile with the 200-week SMA is $36.09. Investors and traders should employ a buy-and-trade strategy between the value level and risky level.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

More from Opinion

Throwback Thursday: Intel Edition

Throwback Thursday: Intel Edition

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

Wednesday Wrap-Up: GE and Facebook

Wednesday Wrap-Up: GE and Facebook

PayPal Strikes Again, Facebook, and AT&T -- 3 Tech Stories You Must Know

PayPal Strikes Again, Facebook, and AT&T -- 3 Tech Stories You Must Know